The equity indices recovered early losses and ended muted on Tuesday. After opening with a 370-point gap down, the Sensex witnessed a steady recovery on selective buying in heavyweight stocks. The index closed down 12.85 points at 74,102.32. The Nifty, too, erased intraday losses of over 140 points and closed with a gain of 37.60 points at 22,497.90.
The gap-down opening was a fallout of the weak global market sentiment after Goldman Sachs lowered its 2025 US GDP forecast from 2.4% to 1.7%, citing a weaker economic outlook. This triggered broad-based selloffs in global and Asian markets.
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“Weakness in Asian and US market indices kept the mood cautious while strong foreign fund outflows, coupled with volatile currency movements and global economic uncertainty, continue to make investors risk-averse,” said Prashanth Tapse, senior VP (research), Mehta Equities.
Sectorally, realty, telecom, oil & gas, energy and metal were major gainers, rising up to 3.92%. IT, banking and auto stocks post significant losses. Rising concerns over the US growth triggered a selloff in IT counters.
Broader markets showed divergence, with the BSE Midcap index rising 0.72% and the smallc ap index declining 0.70%.
The overall market breadth was negative with 2,629 losers against 1,354 gainers on the BSE.
Investor wealth saw a marginal increase of Rs 39,722 crore, taking the total market capitalisation to Rs 394.25 lakh crore.
IndusInd Bank was the top Sensex laggard, plunging 27.2% after its share price fell from Rs 900.60 on Monday to a 52-week low of Rs 649. The sharp decline followed the discovery of accounting discrepancies in its derivatives portfolio, eroding over Rs 19,000 crore from its market capitalisation in a single day. Infosys, Bajaj Finserv, M&M, and Zomato were among other major losers.
Markets end flat but Nifty closes below 22,500; IndusInd Bank sees biggest single-day fall, plunges 27%
Sun Pharma, ICICI Bank, Bharti Airtel, HCL Tech, and Maruti Suzuki were the top gainers in the Sensex pack.
“Looking ahead, global cues, particularly from the US, may continue to cause volatility.
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